Cannon v. Collins

3 Del. Ch. 132
CourtCourt of Chancery of Delaware
DecidedMarch 15, 1867
StatusPublished
Cited by5 cases

This text of 3 Del. Ch. 132 (Cannon v. Collins) is published on Counsel Stack Legal Research, covering Court of Chancery of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cannon v. Collins, 3 Del. Ch. 132 (Del. Ct. App. 1867).

Opinion

The Chancellor : —

In the argument for the defendant, an objection was taken which, if tenable, would dispose of the whole case at this point. This objection was that, in as much as the contract is alleged to have been a parol contract, not in writing as the Statute of Frauds requires, and as the answer denies the existence of any contract, thus putting the complainant to the proof of it, he can prove it only by writing as the Statute requires, — and that, too, notwithstanding a part performance is also alleged and proved, that part performance avails only where the fact of the contract, not being denied, the Statute is pleaded in defense. This argument makes the denial of a parol contract by the answer conclusive in all cases. Of course it is so where there has been no part performance, for then the case is governed strictly by the Statute ; — but is the denial of the. contract by the answer conclusive,precluding parol proof of it by the complainant, when the contract has been part performed ? That is the question. I think in such case the answer is not conclusive. The effect of [139]*139part performance is to take the case, in equity, wholly out of the Statute and to open it to full investigation by the Court, untrammelled by the Statute. Nothing short of this would answer what is the object of the interference of a court of equity to enforce a contract partly performed. This object is to prevent a fraud on the part of the defendant, which it would be, were he, having received from the other party the consideration of the contract, to refuse to perform it himself. But if the Court can relieve for part performance only when the defendant admits the contract; if the Court is precluded by the denial of the defendant from receiving parol proof of the contract, however real and conclusive may be the amount of it, then the exercise of what has been considered a very beneficial power of the Court, the power to prevent fraud in a defendant who has contracted to convey and received the consideration for, is made to depend wholly on the election of the defendant, whether to admit or deny the contract. This doctrine would enable an unscrupulous defendant effectually to consummate his fraud-; and to all defendants in these cases it offers a temptation to perjury — whereas, on the other hand, the danger of fraud by admitting parol proof of a contract which has been part performed is far less. For the Court can exercise a sound discretion as to the measure of evidence it will require against the denial of the answer; and in all such cases, the part performance itself being proved, is explicable only by the fact that a contract was made, and affords strong independent evidence of it.

There is no case in which this precise question has been presented. In some cases it has been said, in general terms, that if the answer denies a parol contract, which is within the Statute of Frauds, the complainant cannot prove it except by writing. Whitchurch vs. Bevis, 2 Bro. C. C. (567) ; Ontario Bank vs. Root, 3 Paige, 478 ; Cozine vs. Graham, 2 Paige 171-181. But in these dicta it will [140]*140be found that reference is had to parol contracts not part performed. See I Story's Eq.Jur. 758, note 4.

On the other hand,there are cases of parol contracts, part performed, in which, though it is not denied by the answer that some contract was made, yet the terms, as alleged in the bill, are denied. In these cases the Court has ascertained the terms by parol proof. 1 Sugd on Vend. 170; Morphett vs. Jones, 1 Swanst. 172; 6 Ves. Jr. 41, note 9. Now these cases, in effect, overrule the doctrine of the objection. For a denial by the answer of the alleged terms of the contract is substantially a denial of the contract; and the admission against the answer of parol proof of the existence of a contract is no more dangerous or against the policy of the Statute, than is the admission of parol proof of the disputed terms of a contract.

I, therefore, proceed, notwithstanding the denial of the contract by this answer, to inquire whether the complainant has adduced sufficient evidence, though it may not be written, to overcome the answer.

Taking up this question, it appears that there is no direct evidence of the contract and of its part performance : — as by writing or by the testimony of a witness present. The complainant relies for proof wholly upon certain admissions on the part of Collins, testified to by several witnesses. An exception to the admissibility of all this testimony has been filed, and properly should be disposed of before any examination of the evidence excepted to ; — but in order to show how entirely the case rests upon the validity of the exception, it may as well be stated in advance, as the result of my examination of the testimony, that admissions on the part of the defendant are proved, which, if competent evidence, are sufficient to sustain the complainant’s case, — while, on the other hand, if these admissions are not competent evidence, the case fails. The disposal of the exception is, therefore, decisive of the case, one way or the other. The question raised by [141]*141it is new in our practice, is one of serious consequences, and was extremely well argued. It claims a careful consideration.

The ground of the exception is that,admissions or confessions by a defendant to be admissable in evidence must have been alleged in the bill. Is this necessary ? Clearly it is not neceseary for the general purposes of pleading. The object of the bill, considered as a pleading, is to give notice> to the defendant of the case made against him, that he may either admit it or allege his grounds of defense. What,therefore,for the purposes of pleading it is necessary to allege in the bill are the facts which constitute the complainant's case, — such as are necessary to entitle him to the relief prayed for, being so necessary of themselves and not serving merely as the evidence of other facts on which the right to relief depends, and which are equally effectual, whether proved in one mode or another. The facts required to be alleged are such that, should any of them be striken out, the complainant’s case would be left on its face without equity and the bill be rendered demurrable. But distinct from such essential facts, and subordinate to them, are other facts which are mere materials for proof, which do not themselves enter into the complainant’s case but are evidence to prove it.

These need not be alleged. Sto. Eq. Sec. 257. The distinction is between the allegata and the probata, the facts to be proved and the evidence by which they are proved. An apt illustration of it is found in the present.case. The contract for a reconveyance of the land by Collins to Cannon (or for what is equivalent) and, as the contract is alleged to have been by parol, a performance or part performance by the complainant, are the two constituent facts of his case, the facts out of which his right to relief springs. Without either of them there would be no equity and no case to be answered. These., therefore, must be alleged with sufficient particularity of time, place and circumstance, for the purpose of fair notice. Admissions [142]*142by the defendant, that there was such contract and that it was part performed, are but one of several modes of evidence to prove these facts.

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Bluebook (online)
3 Del. Ch. 132, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cannon-v-collins-delch-1867.